The joint nature of property is no bar to selling individual shares. Any of the 3 owners can sell his share to any one he so desires. The signature of other 2 owners as witnesses on the sale deed will not make the sale deed attain legal character greater than it would have attained if it were signed by some one else.
Sale of undivided share in property
Hello, A property of two storied building with land is owned by 3 relatives in Delhi. The mutation is in their 3 names. There is no partition deed. Can one owner sell his/her undivided share to a third party without a partition deed? In the sales deed if the two other owners sign as witnesses, is that enough? What documents do we require? Thank you!
Asked 10 years ago in Property Law
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8 Answers
Thank you Mr. Anish. I understand; however, is there a no objection certificate needed from the other two owners? Or some kind of settlement deed?
Asked 10 years ago
no
Thank you Mr. Ashish & Mr. Rajeev! Much appreciated!
Asked 10 years ago
No objection certificate is not required to sell individual shares. The other owners may though release their share in favour of the owner who desires to sell the property.
Section 7 of the Transfer of Property Act, 1882 provides that every person competent to contract i.e. a major and of sound mind or is not disqualified by law for contracting. Therefore even the interest of a co-owner or co-sharer can be sold, mortgaged, leased to another co-sharer or to a stranger. The fact that the partition has not taken place by metes and bounds , does not stand in the way of the interest of a co-owner.
The transferee steps into the shoes of his transferor ie the co-owner, and is clothed with all the rights and becomes subject to all the liabilities of his transferor.
Yes, the undivided share can be transferred by way of registered sale deed signed by the other two owners as witnesses. But later the purchaser will give legal notice to the all the owners to to demarcate his property out of the undivided property. If there is no response from them, the purchaser can file a partition suit before the concerned civil court.
To transfer the property you require the document showing how you got the property (i.e. your vendor sale deed and its link document), Encumbrance certificate, Municipal Tax, Clearance or update payment of electricity, water bills etc and ofcourse a legal opinion from your lawyer verifying the title of the property.
Thank you Mr. Sethi and Mr. Pasula. One question - if in the future the buyer goes to court for a partition, would the seller be involved? From what I understand,the court proceedings would only be with the other two owners and the new buyer. Is my understanding correct? If not, how can the seller completely exit the property?
Asked 10 years ago
1) yes your understanding is correct . seller has sold you his interest in property by registered sale deed . you are absolute owner of said share . in the partition suit you have to make the other 2 co owners party to the proceedings .
There is no objection from your vendor. If you file a suit, naturally in the written statement (counter) your vendor admits the fact. Where as the real dispute will be with the other 2 co-owners.
Your understanding is correct. If the buyer goes to court the proceedings will be between him and the remaining owners. The vendor will not be a party as he ceased to be the owner of his share in the property after he made the sale deed in favour of the purchaser.